Earlier this month, law enforcement arrested Gregory Chmielewski 43, in Arizona on the alleged charge of insurance fraud. The Fort Independence Indian Tribe was one of the victims in this case.

According to the Sacramento Bee, Chmielewski faces fraud and money-laundering charges. The Bee reported that according to his indictment, Chmielewski set up a company in Roseville to provide low-cost workers’ compensation insurance. The story goes on to say that the accused had partnered with the Fort Independence Indian Reservation to “establish a company called Independent Staffing Solutions.” The story says the tribe owned the company but Chmielewski ran it.

The U.S. Attorney’s office has alleged that the defendant began to divert and misappropriate millions of dollars for his personal use. The Sacramento Bee reported that court records say that Chmielewski’s firm owed the tribal-owned company $7 million. Prosecutors allege that the firm victimized employers as well as the tribe.

Sierra Wave Media contacted tribal leaders for comment. Their attorney, Jack Duran, did return our calls and sent us a statement from Tribal Chairman Israel Naylor. It says that the arrest of Chmielewski begins the end of a “very difficult chapter in the history of the Fort Independence Indian Community.” Naylor also said that “What started out as a viable and innovative solution to Workers’ Compensation insurance, via a tribal plan, turned into an example of greed and avarice….”

The press release says that the tribe’s federal status and ability to use that status for economic development purposes had worked well for other projects but not for the insurance plan when “Mr. Chmielewski allegedly began to siphon funds, intended to support the business, for his and others own financial gain.”

Chmielewski appeared in federal court in Sacramento for an arraignment last week. He reportedly pled not guilty.

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About Benett Kessler

Always interested in writing, Benett was the editor of her high school paper, proceeded to the University of Chicago and then out West where she and John Heston formed Eastern Sierra News Service in Inyo County. They fed film to KNXT in Los Angeles and co-wrote and produced the first daily radio news in the Eastern Sierra. Their work ranged from a published news magazine to the first television newscast. They continued to provide videotaped news to KABC and other news outlets. After a seat on the Mammoth Times board and work as newswriter, Benett formed her own company, Sierra Broadcasters and launched an FM radio station, now KSRW and a broadcast television station, KSRW-TV33. The latest addition - Sierrawave.net. Her company motto: Comfort the afflicted, and afflict the comfortable.

One Response to Ft. Independence tribe named as victim in alleged insurance fraud case

They summed it all up in the last line … greed, the same sort of thing that has other entities such as The Town Of Mammoth Lakes in the trouble they are in. Only thing is this guy couldn’t play the game like the bigger carpet baggers do. Sad, but it seems to be what so many resort to now days, take the easy way to wealth, at others expense.